Marijuana stocks are on the rise in 2018, with many companies in the space reaping massive returns. The industry is still in its infancy, but it’s only a matter of time before marijuana becomes legalized across the country.
The new stocks to buy and hold is a term that has been used to describe the idea of buying and holding stocks for 10 years. These 3 marijuana stocks are good investments because they have seen consistent growth over the past 5 years, and could be expected to continue that trend into the future.
It’s critical to select firms with high-quality businesses and significant growth catalysts if you want to purchase and keep stocks for a long time. The marijuana market is one that attracts the interest of investors of all ages and trading styles.
Growers, sellers, and auxiliary providers have sprung up left and right as more states have legalized marijuana for medicinal and recreational reasons. In 2020, legal cannabis sales in the United States increased by almost 50%. In fact, by 2028, the worldwide legal marijuana industry is expected to be worth almost $71 billion.
Not every marijuana stock is a good investment. Some of the marijuana businesses that have gotten the greatest investor attention simply don’t have the financials to back up the buzz. However, there are several great companies in the marijuana industry that investors with a buy-and-hold strategy should consider right now. The following three stocks are examples of such businesses.
GrowGeneration (NASDAQ:GRWG) is a unique marijuana stock since it does not sell marijuana. It does, however, offer a wide range of agricultural products that any marijuana grower or harvester would need. GrowGeneration presently runs 62 garden centers in the United States, with a strong presence in major regions such as California and Colorado.
As you would expect, the marijuana industry’s rapid expansion has resulted into record revenue and profits for GrowGeneration. The stock has gained more than 50% in the last year alone, and is up well under 1,000% since going public less than five years ago.
The business recorded a 190 percent increase in sales and a 161 percent increase in net income in the most recent quarter. The company’s yearly sales and net income have grown by 143 percent and 303 percent, respectively, during the last five years.
GrowGeneration still has plenty of opportunity to grow its business and benefit from new and current operators throughout the nation who depend on its garden centers to transport their product from the greenhouse to the dispensary. This is a company with a lot of upside potential, and it’s a fantastic marijuana bet for investors of all risk appetites.
Jushi Holdings is number two on the list.
Jushi Holdings (OTC:JUSHF) is a cannabis dispensary, retailer, and cultivation and manufacturing facility network with locations throughout the United States. It also has an e-commerce presence, with a variety of branded clothing, sweets, and vape items from its carefully selected brand portfolio.
The business is known for buying additional facilities and retail outlets, and it did so in September in both Massachusetts and Nevada. In September, the business launched its 15th retail store in Pennsylvania, a medical-use state with projected cannabis sales of $925 million by 2021.
Jushi’s revenue increased by 220 percent year over year in the second quarter of 2021. Despite a number of recent expensive acquisitions, the company’s bottom line improved by almost $32 million compared to the net loss of approximately $27 million it recorded in the first quarter. This increased the company’s net profits to $4.8 million in the second quarter.
The stock is up nearly 75% from a year ago, and Wall Street believes the firm has a potential upside of up to 160 percent in the next year. If you’re a more risk-averse investor, you may simply pick up some shares for less than $5 apiece while keeping the stock in your portfolio as a lesser stake.
3. Industrial Properties of the Future
Innovative Industrial Properties (NYSE:IIPR) definitely meets the bull’s eye on all criteria if you’re an income-seeking investor searching for a marijuana company with a history of strong growth and a similarly bright future.
Because Innovative Industrial Properties is a real estate investment trust, it is legally required to distribute a minimum of 90% of its taxable income to its shareholders in the form of dividends. The stock now yields 2.36 percent. Year after year and quarter after quarter, Innovative Industrial Properties’ sales and earnings have risen, as has its dividend (the most recent dividend boost was an incredible 28 percent year over year).
Licensed medicinal cannabis producers are leased from the company’s fast growing inventory of sites. It has a long list of customers who rent facilities all across the country, from California to New York. Green Thumb Industries, Trulieve, Cresco Labs, and my prior choice, Jushi Holdings, are among these well-known brands in medical-use cannabis.
Compared to the same periods in 2020, Innovative Industrial Properties recorded revenue growth of 103 percent in the first quarter and 101 percent in the second. During these two quarters, its net income increased by 122 percent and 124 percent, respectively. The REIT’s adjusted funds from operations (AFFO) increased by 116 percent in Q1 and 104 percent in Q2, providing a more realistic picture of its profits over the previous two quarters.
Numbers like this don’t grow on trees in the world of marijuana stocks. Innovative Industrial Properties is a great long-term investment for those looking to add some growth to their portfolio.
The is grwg a good stock to buy is an interesting question. Grwg has been on the market since 2009 and has shown great potential for growth in the next 10 years.
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